ED moves court against Kejriwal, seeks extension of judicial custody
The Enforcement Directorate (ED) on Monday approached the Rouse Avenue Court in Delhi, seeking to extend the judicial custody of Chief Minister Arvind Kejriwal. This request is tied to a money laundering investigation linked with the now defunct Delhi liquor excise policy. As of now, Kejriwal is on interim bail until June 1 and is expected to surrender on June 2. The court has yet to decide on the application, with a decision likely on June 2.
Why does this story matter?
In November 2021, the Delhi government introduced the excise policy for 2021-22. However, less than a year later, it opted to abandon it following widespread corruption accusations. Central investigation agencies asserted that wholesaler profit margins were artificially inflated to 12% from 5%, promoting cartelization and benefiting ineligible license holders. The Kejriwal-led Delhi administration had refuted the allegations, arguing that the policy would have boosted revenue.
AAP's alleged role in excise policy scam
The Central Bureau of Investigation (CBI) alleges that liquor companies involved paid kickbacks amounting to ₹100 crore to the AAP, some of which were routed to public servants. According to the ED, the party used the illegally generated funds to campaign for the Goa and Punjab elections
Kejriwal taken into custody on March 21
Kejriwal was taken into custody by the ED on March 21, in the excise policy case. The Supreme Court granted him interim bail on May 10, with a condition that he must not visit the Office of the Chief Minister or the Delhi Secretariat. As per his bail conditions, Kejriwal is set to surrender on June 2, following the final phase of polling in general elections.
ED files chargesheet against Kejriwal and AAP
In its most recent chargesheet filed on Friday, the ED named Kejriwal and his party, the Aam Aadmi Party (AAP), as defendants in the excise policy investigation. An official stated that a comprehensive chargesheet has been submitted based on "irrefutable evidence" indicating that "Kejriwal is the key conspirator who used his position as the CM of Delhi to facilitate the offense of money laundering punishable u/s 4 of PMLA (Prevention of Money Laundering Act) by the 'company' i.e. AAP".
ED's allegations and court proceedings
The ED previously argued that AAP, as a political party, is defined as an association or a body of individual citizens of India under the Representation of People Act. Therefore, it can be classified as a "company" under section 70 of Prevention of Money Laundering Act. The court also extended the judicial custody of Bharat Rashtra Samithi Leader K Kavitha—daughter of former Telangana CM K Chandrashekar Rao—in a related case until June 3.
